Factors That Can Affect the Success of an SBA Offer in Compromise Application
Factors That Can Affect the Success of an SBA Offer in Compromise Application
Financial institution officers and a bank consumer had been charged inside the Chicago area Tuesday with fraud for submitting a false loan application to the SBA (SBA) for nearly $4 million.
James Graber and Kristin King, along side Ryan Cole of Garland, Texas, were charged by a federal grand jury in Rockford with wire fraud in reference to a mortgage application made to the SBA.
Authorities charged Cole with counts of making false statements to the SBA on a loan application, Graber and King have been each charged with one be count.
The case centers around SunLee Development, which owned a industrial building at 4001 North Perryville Rd., in Loves Park, Illinois. SunLee acquired three loans totaling greater than $3 million at a nearby financial institution in which Graber, 57, was employed as a vice president and King, forty four, was also employed as a VP and government guaranteed lending specialist. Cole, 45, and a member of SunLee, guaranteed the three loans and therefore was liable in the event of default.
SunLee fell behind on its loan because of tenants at 4001 North Perryville failure to pay rent. The indictment alleges that Cole helped tenants at 4001 North Perryville to apply for an SBA guaranteed loan and to purchase the building from SunLee. The tenants and Cole are known as the Perryville Investment Group.
The indictment states that in March of 2012, Cole, Graber and King submitted a $3.98 million loan application to the SBA for the Perryville Investment Group that contained false statements and hid material statistics. The Perryville Investment Group subsequently defaulted on the SBA loan.
Each count of wire fraud, making false statements and concealing material facts to the SBA comes with a maximum penalty of up to 30 years in prison and a fine of up to $1 million.
If you have defaulted on an SBA loan, you may be eligible for an SBA loan offer in compromise. The SBA loan offer in compromise may allow you to settle the debt for less than the full amount. Contact Protect Law Group at 1-888-756-9969 today for a consultation with a qualified SBA workout attorney.
Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure
Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements
Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.
Small business and guarantors obtained an SBA COVID-EIDL loan for $1,000,000. Clients defaulted causing SBA to charge-off the loan, accelerate the balance and refer the debt to Treasury's Bureau of Fiscal Service for collection. Treasury added nearly $500,000 in collection fees totaling $1,500,000. Clients were served with the SBA's Official 60-Day Notice and exercised the Repayment option by applying for the SBA’s Hardship Accommodation Plan. However, their application was summarily rejected by the SBA without providing any meaningful reasons. Clients hired the Firm to represent them against the SBA, Treasury and a Private Collection Agency. After securing government records through discovery, we filed an Appeals Petition with the SBA Office of Hearings & Appeals (OHA) court challenging the SBA's referral of the debt to Treasury. During litigation and before the OHA court issued a final Decision and Order, the Firm successfully negotiated a reinstatement and recall of the loan back to the SBA, a modification of the original repayment terms, termination of Treasury's enforced collection and removal of the statutory collection fees.
Client personally guaranteed SBA 7(a) loan balance of over $150,000. Business failed and eventually shut down. SBA then pursued client for the balance. We intervened and was able to present an SBA OIC that was accepted for $30,000.
Clients obtained an SBA 7(a) loan for $324,000 to buy a small business and its facility. The business and real estate had an appraisal value of $318,000 at the time of purchase. The business ultimately failed but the participating lender abandoned the business equipment and real estate collateral even though it had valid security liens. As a result, the lender recouped nearly nothing from the pledged collateral, leaving the business owners liable for the deficiency balance. The SBA paid the lender the 7(a) guaranty money and was assigned ownership of the debt, including the right to collect. However, the clients never received the SBA Official 60-Day Notice and were denied the opportunity to negotiate an Offer in Compromise (OIC) or a Workout directly with the SBA before being transferred to Treasury's Bureau of Fiscal Service, which added an additional $80,000 in collection fees. Treasury garnished and offset the clients' wages, federal salary and social security benefits. When the clients tried to negotiate with Treasury by themselves, they were offered an unaffordable repayment plan which would have caused severe financial hardship. Clients subsequently hired the Firm to litigate an Appeals Petition before the SBA Office & Hearings Appeals (OHA) challenging the legal enforceability and amount of the debt. The Firm successfully negotiated a term OIC that was approved by the SBA Office of General Counsel, saving the clients approximately $205,000.
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